A durable power of attorney

A durable power of attorney is an instrument under which one person called as principal designates another individual as attorney or agent. In fact it is a contract and it creates an agency-principal relationship. The agent is authorized by the principal and he is engaged in certain financial or business transactions with third parties (banks, title companies, landlords, etc).
A durable power of attorney can act on a person’s behalf even while that person is still alive. People suffering from amentia or senility are no competent to make decisions, but sometimes they need to continue their financial transactions. A durable power of attorney allows doing that. It’s quite easy to set up a durable power of attorney just as to sign a single legal document, naming whom you’d like to appoint as your agent. You don’t have to go through any hearings or court proceedings. But if you are incapacitated, and have not signed a durable power of attorney and have not named an agent, you can just hope that some person will become your conservator. In many cases conservatorship is a long and expensive court procedure. It requires someone to volunteer, someone who accepts to become the conservator. And of course it must be a person whom you trust with your affairs. Individuals granted power of attorney must act in good faith at all times on behalf of the grantor. The agents cannot take advantage of his or her position.
A durable power of attorney is effective until the principal dies or cancels DPA. It does not need to be renewed over time. Lastly, a power-of-attorney can be put to an end if a time limit is specified in the document or if a specific event described in the document has occurred.